Cipla slashes price of generic cancer drug Nexavar in India by 76%; other cuts too

Indian drugmaker Cipla (BSE: 500087) has slashed the prices of certain life-saving cancer drugs used in the treatment of brain, lung and kidney cancer by up to 76%, according to domestic media reports.

In a move that will stir up the pot, the company has significantly dropped its price on generic sorafenib, the active ingredient of German drug major Bayer’s (BAYN: DE) Nexavar, used in advanced kidney cancer, from 27,950 rupees to the patient per month to 6,840 rupees, said an official familiar with the development, quoted by the local Business Line newspaper.

Earlier this year, the Indian Patent Office has issued the first-ever compulsory licence in India to a generic drug manufacturer (The Pharma Letter March 13). This effectively ended the monopoly in India on Nexavar. Indian generics firm Natco Pharma (524816: BY) was issued the license under section 84 (1) (b) of the Patents Act to market generic sorafenib at 8,880 rupees for a month's treatment, as compared to 28,000 rupees per month charged by Bayer for its patented drug. Under the compulsory license, Natco must pay Bayer a 6% sales royalty.